1. Assume that the structure of the airline industry is characterized as an oligopoly. Airline D observes that if it raises its price, the other airlines do not follow the change, but if it lowers its price, the other airlines always follow the change. Describe the shape of Airline D's demand curve.

2. Explain why the present value of the cash flow expected to be created by the acquisition of a business will decline as the risk of that acquisition rises?

3. Explain why an investment today depends on comparing the costs of the investment to the returns on the investment in present value term.

4. Describe profit maximization in terms of marginal revenue and marginal cost.

Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business. To invest in her factory, she withdrew $20,000 fromher savings, which paid 5 percent interest, and borrowed $30,000 from her uncle, whom she pays 4 percent interest per year. Last year she paid $25,000 for ingredients and had revenue of $60,000. She asked Louis the accountant and Greg the economist to calculate her profit for her.

Explicit cost- ?

Implicit cost-?

Accounting profit-?

Economic profit-?

LGF Inc. sells furniture for $16,525. customers can buy a 5 years warranty on this furniture for $5,000 up to 1year after the purchase date of the product.  Furniture and warranty package costs $20,000 for special deal.

On January 1, 2007, the company sold 5 special deal packages. The cost of the furniture sold was $68,000.

The company paid cash of $700 for the cost of meeting the warranty during 2007.

The company recognizes revenue annually on the warranty agreement based on the passage of time.

Under IFRS, what is the journal entries for January 1, 2007 and December 31, 2007?

This year Burnham Trucking Compay told their CPA they had purchased a $12,000 trailer but only has receipts of $10,000. Burnham has stated that they "know" what the the true value of the trailer should be, even though the receipt provided is closer to the purchase price of other trailers purchased in the same city/area.

Acceptance by the CPA's of the asset cost as the higher figure of $12,000 and the asset's presentation in the financial statements as $12,000 would be...

Data and information or knowledge is often used interchangeably; however, data becomes information when it is viewed in context or in post-analysis. While the concept of data is commonly associated with scientific research, data is collected by a huge range of organizations and institutions, including businesses (e.g., sales data, revenue, profits, and stock price), governments (e.g., crime rates, unemployment rates, literacy rates) and non-governmental organizations (e.g., censuses of the number of homeless people by non-profit organizations). Having in mind the concept of business research data, compare and contrast the primary and secondary source of data.?

1- DHL Company specializes in rapid parcel delivery. Cross sectional data from DHL’s regional hub in Palestine were used to estimate the demand equation for the company’s services. Holding income and prices of other goods constant, the demand equation is estimated to be

P = 66Q -1 /3

where P is the price per pound and Q is pounds delivered. The marginal cost of delivery is constant and equal to $2 per pound.

a. What is the point-price elasticity of demand?

b. What are the profit-maximizing price and quantity?

c. What are the total revenue maximizing price and quantity?

Ace Distributors has the following transactions related to notes receivable during the last month of the year.

Journalize the transactions for Ace Distributors. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

XYZ Company plans to develop stores in UAE. Each new store will require an initial investment of $270,000 and a monthly operating cost of $25.000. Each will 578.500 h value after 5 years. The company also estimates that a new store will bring in revenue of $40,000 each month. Using the annual worth w method in the way investment if the company's MARR is 8% per year, compounded monthly.

AW = 12,586 + investment should be rejected.

AW = $9,586 - investment should be accepted.

AW = $11,586 -- investment should be rejected.

AW = $10,586 -- investment should be accepted.

Indicate whether the following represent IT input controls, processing controls, or output controls.

•In the payroll system, work hours entered for a single employee for a week cannot exceed 70.

•In the purchasing system, list of vendor checks printed is scanned by the controller before checks are mailed.

•In a sales system, invoices would not be printed if total revenue doesn't match quantity times sales price.

•In the purchasing system, vendor invoices cannot be entered if the vendor name doesn't appear in the approved vendor master list.

•In the purchasing system, check numbers out of sequence are flagged in an exception report

QUESTION 1:

Davie's Hotel budgeted 800 room sales for the week ended June 24th. The estimated average price per room was $18.50. The actual average price per room was 10 percent greater than anticipated, while room sales in units were 10 percent less than forecasted.

Complete the following table for the Hotel’s revenue variance analysis.

A) Calculate the budget variance.

B) Calculate the price variance.

C) Calculate the volume variance.

D) Calculate the price-volume variance.